With drilling ops underway, first oil from Asian project still in the cards for next quarter

Canada-based oil and gas company Valeura Energy has kicked off a development drilling campaign at an asset off the coast of Thailand with a jack-up rig owned by Borr Drilling, an offshore drilling contractor.

While confirming the completion of an infill drilling campaign at Nong Yao A, Valeura disclosed the start of development drilling on the Nong Yao C extension in the Gulf of Thailand, both part of the Nong Yao oil field, where the firm holds 90% operated working interest. The company drilled two production-oriented horizontal wells at the Nong Yao A wellhead platform that were brought online as producers. The 37H well culminated in a horizontal section within the primary target H12.5 reservoir, which was completed for production.

This zone contributes approximately 500 bbls/d of oil, based on performance over the past ten days. The well also encountered 68 feet of net oil pay across eight separate appraisal target intervals, which are set to be further evaluated as targets for potential future development wells. Once developed, these may add further producible volumes to the asset.

On the other hand, the 38H well has been completed as a horizontal producer in the H4.3 reservoir interval. While this well is bringing around 1,000 bbls/d of oil, based on performance over the past five days, a thin oil-bearing sand was encountered in the shallower H2.0 sand interval, which will be studied to determine additional producible volumes.

Sean Guest, Valeura Energy’s President and CEO, commented: “I am pleased with the results of our new Nong Yao A wells, which further illustrate the potential of our assets to add volumes through ongoing infill drilling. Drilling these wells now was a nimble move by our team to shore up production rates just before dedicating our rig to the Nong Yao C development drilling programme. 

“The start of drilling operations at our brand new Nong Yao C infrastructure marks a significant milestone for our Company.  This will be the first new development for Valeura in Thailand, and is expected to serve as a substantial source of production growth in the second half of this year.” 

Furthermore, Valura explains that its contracted drilling rig, Borr Drilling’s Mist jack-up, has moved to the Nong Yao C mobile offshore production unit (MOPU) where it has begun batch drilling operations to develop the Nong Yao C field extension. This drilling campaign, which is anticipated to take about four months, will entail up to nine gross wells, including six producer wells and up to three water injectors. 

The Canadian player expects the first oil from the Nong Yao C development in Q3 2024. The firm is targeting aggregate peak oil production rates from the expanded Nong Yao field of 11,000 bbls/d, approximately a 50% increase over the 7,307 bbls/d reported for Q1 2024. The MOPU TSeven Shirley, representing T7 Global’s first foray into Thai waters, serves as the wellhead production platform for Valeura’s Nong Yao C field development. 

“We remain focused on safe and sustainable growth, and I am pleased to note that our drilling operations have achieved an important safety record, logging one full year of work without a lost time injury. We remain committed to delivering a top tier health, safety, and environmental performance across all our operations,” highlighted Guest.